On April 23, the Theoretical Learning Center Group of the Party Leadership Group of the Ministry of Finance wrote in the People's Daily that at present, China's financial system has a large scale, but the financing structure is unreasonable. The proportion of indirect financing and direct financing is 7:3, and the proportion of bond financing and equity financing in direct financing is about 9:1. There are problems such as "more money, less capital" and "insufficient patient capital". A well structured financial market system is the fundamental prerequisite for effective financial services to the real economy. We should support the construction of a safe, standardized, transparent, open, dynamic and resilient capital market. Vigorously improve the quality of listed companies, compact the professional responsibility of third-party intermediaries, and crack down on accounting fraud in accordance with the law. We will improve the tax system of the capital market and the policies conducive to the entry of medium - and long-term funds into the market. We will focus on optimizing the proportion of direct and indirect financing, equity and debt financing, and work together to optimize the institutional environment for fund raising, investment management and withdrawal, so as to better play the role of venture capital and private equity investment in supporting scientific and technological innovation.
The full text is as follows:
Insist on deepening the supply side structural reform of finance -- study the excerpt of Xi Jinping's exposition on financial work
Finance is the lifeblood of the national economy and has a bearing on the overall situation of China's modernization drive. In 2019, General Secretary Xi Jinping proposed "deepening financial supply side structural reform" at the 13th collective learning of the 19th Political Bureau of the Central Committee. At the Central Financial Work Conference, General Secretary Xi Jinping, standing at the height of history and the times, systematically explained the basic meaning of the financial development road with Chinese characteristics and the main connotation of the modern financial system with Chinese characteristics. With a grand strategic vision and profound historical insight, he raised the flag and planned the layout of financial work. Insisting on deepening financial supply side structural reform is an important part of the "eight insistences" of the financial development road with Chinese characteristics, and also the "main line" of doing a good job in financial work at present and in the future. It is of great significance for promoting high-quality financial development and accelerating the construction of a powerful financial country to deeply study the Excerpt of Xi Jinping's Discussion on Financial Work, accurately understand and scientifically grasp the connotation and requirements of deepening the financial supply side structural reform.
To deepen financial supply side structural reform, we must strengthen coordination between fiscal and financial policies. General Secretary Xi Jinping pointed out: "We should strengthen coordination, enhance the flexibility, coordination and matching of policy initiatives, and strive to achieve the maximum policy effect." Finance is the foundation and important pillar of national governance, and plays an important role in implementing macro-control, promoting financial governance, deepening financial reform, and maintaining financial stability. The coordinated fiscal and financial policy is a powerful power to improve the quality of financial supply. In terms of macro orientation, the current proactive fiscal policy should be coordinated with the prudent monetary policy, play a good combination of counter cyclical and cross cyclical adjustment, and form a joint force in expanding investment, promoting consumption, stabilizing exports, etc. In terms of the meso mechanism, it is necessary to strengthen the coordination between fiscal and monetary policies and financial reform, improve the regulation mechanism of basic money supply and money supply, support the gradual increase of treasury bond trading in the open market operation of the central bank, and enrich the monetary policy toolbox. We will study ways to expand the variety and scale of government bonds sold over the counter. We will improve the long-term mechanism for issuing overseas sovereign bonds. We will deepen the market-oriented reform of interest rates, unblock the interest rate transmission mechanism, give better play to the benchmark role of treasury bond yield curve pricing, and improve the efficiency of capital allocation. We will improve the risk management responsibility mechanism that is consistent in power and responsibility, and compatible in incentives and constraints, and firmly hold the bottom line that no systemic risk will occur. In terms of micro management, we will make overall use of policy based finance, interest subsidy, financing guarantee and other policy tools to support and leverage more funds to accurately serve key areas and weak links of the economy and society.
To deepen financial supply side structural reform, we must strengthen the management of state-owned financial capital. General Secretary Xi Jinping pointed out: "Improve the management of state-owned financial capital, implement the management responsibilities of state-owned financial capital contributors, and optimize assessment." The important feature and advantage of China's financial system is that state-owned financial institutions dominate. In recent years, under the strong leadership of the CPC Central Committee and the State Council, the financial department has scientifically performed its responsibilities as a contributor of state-owned financial capital, and has made solid progress in promoting the service of state-owned financial enterprises to build a new development pattern. State owned financial capital is an important guarantee for promoting national modernization and safeguarding national financial security. We should continue to adhere to the goal orientation and problem orientation, accelerate the centralized and unified management of state-owned financial capital, and constantly consolidate the management system focusing on capital management. Promote the introduction of regulations on the management of state-owned financial capital as soon as possible. Dynamically improve the performance evaluation system of state-owned financial enterprises by industry. We will establish and improve the mechanism for capital replenishment and dynamic adjustment of state-owned financial enterprises. Guide state-owned financial enterprises to reduce the level of internal legal persons. We will strengthen supervision over asset transactions, property rights transfers, and overseas investments of state-owned financial enterprises. We will improve the salary management system of state-owned financial enterprises, further strengthen financial supervision, and revise and improve financial rules for financial enterprises.
To deepen the structural reform of the financial supply side, we must establish a sound financial market system with reasonable structure. General Secretary Xi Jinping pointed out: "We should adapt to the general trend that development depends more on innovation, creativity and creativity, and promote a change in the structure and quality of financial services." China is in the critical historical period of leading the construction of a modern industrial system with scientific and technological innovation and developing new quality productivity, and needs the financing system structure to follow up the transformation and upgrading of the real economy. At present, China's financial system has a large scale, but the financing structure is unreasonable. The proportion of indirect financing and direct financing is 7:3, and the proportion of bond financing and equity financing in direct financing is about 9:1. There are problems such as "more money, less capital" and "insufficient patient capital". A well structured financial market system is the fundamental prerequisite for effective financial services to the real economy. We should support the construction of a safe, standardized, transparent, open, dynamic and resilient capital market. Vigorously improve the quality of listed companies, compact the professional responsibility of third-party intermediaries, and crack down on accounting fraud in accordance with the law. We will improve the tax system of the capital market and the policies conducive to the entry of medium - and long-term funds into the market. We will focus on optimizing the proportion of direct and indirect financing, equity and debt financing, and work together to optimize the institutional environment for fund raising, investment management and withdrawal, so as to better play the role of venture capital and private equity investment in supporting scientific and technological innovation.
To deepen the structural reform of the financial supply side, we must establish and improve the financial institution system of division of labor and cooperation. General Secretary Xi Jinping pointed out that "China's financial institutions have a complete range of categories, the key is to dislocation development, complement each other's advantages, and perform their respective duties and strengths in serving the real economy." By the end of 2023, China's banking assets accounted for more than 90% of the total assets of financial institutions, and the asset size of the securities industry and insurance industry accounted for 3% and 6.5% respectively. To some extent, this reflects that banks still have an absolute advantage and other financial institutions are not fully developed. At the same time, large, small and medium-sized financial institutions have strong homogeneity and insufficient differentiation. Some small and medium-sized financial institutions deviate from their main business and expand blindly, so the potential risks cannot be ignored. The financial institution system of division and cooperation is the key support to realize the balance of financial supply entities. We should promote the improvement of institutional positioning, return to the source, focus on the main business, and promote layout optimization and structural adjustment. We will support large state-owned financial institutions to become better and stronger, serve the real economy well and maintain financial stability as a ballast. Promote small and medium-sized financial institutions to reduce quantity and improve quality, and carry out characteristic operation based on local conditions. Strengthen the functional orientation of policy financial institutions, focus on serving the national strategy, mainly do business that commercial financial institutions can't do or can't do well, implement the reform of classification and account division, and improve the management mechanism of asset liability scale. Vigorously support the cultivation of first-class investment banks and investment institutions. Give play to the economic "shock absorber" and social "stabilizer" functions of the insurance industry. We will strengthen the construction of an independent, controllable, safe and efficient financial infrastructure system.
To deepen financial supply side structural reform, we must establish and improve a diversified and professional financial product and service system. General Secretary Xi Jinping stressed: "Strengthen the function of financial services, identify the key points of financial services, focus on serving the real economy and serving the people's life, and prevent being divorced from reality to illusion and self circulation." At present, the quality and efficiency of financial services for the real economy in China need to be further improved, and financial services are not inclusive enough. For small and medium-sized enterprises, scientific and technological innovation The support in green transformation and other fields is not enough and powerful. Diversified and professional financial products and service systems are the basic guarantee to match the financial needs of high-quality development. We should give effective play to the role of fiscal and tax policies in guiding and leveraging, support science and technology finance, green finance, inclusive finance, pension finance, and digital finance, strengthen product and service innovation, optimize the capital supply structure, and strengthen high-quality financial services for major strategies, key areas, and weak links. We will promote the use of more financial resources to promote scientific and technological innovation, advanced manufacturing, green development, small and medium-sized micro enterprises, and vigorously support the implementation of the innovation driven development strategy and the regional coordinated development strategy to ensure national food and energy security.
Financial activity, economic activity; Financial stability and economic stability. The financial supply side structural reform is an integral part of the overall supply side structural reform, and is the deepening and expansion of the supply side structural reform from the real economy to the financial sector. Based on the new era and new journey, the financial department should further integrate its thoughts and actions into the spirit of General Secretary Xi Jinping's important statement on financial work, support the continuous optimization of financial supply structure and efficiency, promote high-quality financial development, better meet the multi-level and diversified financial service needs of the real economy and the people, and build a strong country Make new and greater contributions to the great cause of national rejuvenation.
